【Fujitomi】Nikkei Stock Average falls for the first time in three days; Bank of Japan ETF buys provide support
The Nikkei stock average fell for the first time in three days, ending at 19,883.90 yen, down 77.65 yen (0.39%) from the previous day. Although the yen’s weakness paused in the foreign exchange market and U.S. stock prices fell the previous day, the index was supported by buying in solidly performing stocks. In the afternoon, traders anticipated purchases of ETFs by the Bank of Japan, which helped narrow the downside.
The TOPIX also fell for the first time in three days, ending at 1,580.71 points, down 6.15 points (0.39%) from the previous day. The total trading value on the Tokyo Stock Exchange First Section was 2.9645 trillion yen, and the trading volume was 2.24862 billion shares. Today, buy and sell orders related to the calculation of the Special Quotation (SQ) for the stock price index options and the mini Nikkei 225 futures May contract (1,9991.27 yen, up 29.72 yen from the previous day) increased activity. The number of declining issues on the First Section was 1,140, rising issues were 734, and unchanged were 141 shares.
The Nikkei futures June contract dropped for the first time in seven days, falling below the 5-day moving average (19,900 yen). Depending on the currency market, there is a possibility of entering a correction phase due to short-term overheat. The downside targets include the conversion line (19,580 yen) and the gap opened on the 8th (19,480–19,710 yen).
